A recent report from Mercator Advisory Group revealed that younger American consumers have shied away from credit cards in favor of debit cards, which could be beneficial to the mobile payments industry.
The report found that only 59 percent of Americans age 18 to 35 held credit cards, compared to 70 percent of seniors. Only 12 percent of seniors indicated that they used debit cards, compared to 36 percent of young adults, Mobile Marketing Watch reports.
“The anti-credit card sentiment appears to be waning,” Karen Augustine, the manager of CustomerMonitor Survey Series at Mercator Advisory Group, said, according to Mobile Marketing Watch. “But issuers need to address the needs of the young adults in order to stimulate greater credit card volume.”
Sinclair Briar, an e-commerce analyst with XK Mobile Solutions, said that young consumers will drive the growth of the mobile payment industry and Near Field Communication technology in coming years.
“Make no mistake about it, today’s consumers do not have an aversion to spending,” Briar said, Mobile Marketing Watch reports. “They are the most debt heavy young society in human history. It’s just their payment preferences which are shifting. NFC tests very positively with focus group of shoppers under the age of 40. Mobile payment options are resonating with this group solidly. Diminishing credit card access is only going to benefit mobile momentum in the long run.”